280550 �NHITE - GTV GLERK �/\/ !
PINK - FINANCE G I TY OF SA I NT PA U L COUflCII � f!� �����
CANARV - DEGARTMENT , '��ar�.� '�
BLUE - MAVOR File NO.
ouncil Resolution
Presented By A �'
� L r
✓Referred To �� ����"� Committee: Date " ���
Out of Committee By Date
WHEREAS:
1 . On May 17, 1983, the Port Autr�ority of the City of Saint Paul adopzed Resolution
No. 2144, giving preliminary approval to tr�e issuance of revenue bonds in the initial
principal amount of $445,000 to finance the coriStruction of a 9,600 square foot truck
maintenance faciliLy at 739 Vandalia in SL. PauT for Central Warer�ouse Gompany. Miller &
Scriroeder Municipals will underwrite ttie revenue bond issue for a term of 30 years.
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds
authorized by the Port Authority of the City of Saint Paul , shall be issued only with the
consent of the City Council of the City of Saint Paul , by resolution adopted in accordance
with law;
3. The Port Authority of the City of Saint Paul has requested that the City Council
give its requisite consent pursuant to said law to facilitate the issuance of said revenue
bonds by the Port Authority of the City of Saint Paul , subject to final approval of the
details of said issue by the Port Authority of the City of Saint Paul .
RESOLVED, by the City Council of the City of Saint Paul , that in accordance with Laws
of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the
aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution
No. 2144 the exact details of which, including, but not limited to, provisions relating
to maturities, interest rates, discount, redemption, and for the issuance of additional
bonds are to be determined by the Port Authority, pursuant to resolution adopted by the
Port Authority, and the City Council hereby authorizes the issuance of any additional bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas Nays Requested by Department of:
Fletcher � �
Levine [n Favor
Masanz
Nicosia
scheibe� _ � _ Against BY
Tedesco
Wilson
JUN 3 01983 Form Approved by City Attorney
Adopted by Council: Date ^_
Certified as�e uncil et , By � �
g5, v1
App y ;�lavor: te `�u� � 1983 Ap v by Mayor for Sub 'ssi n to Co�ncil
B BY
PUBLISNED J U L 9 198�
�
� ORT
`� AUTHORITY ���i����
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE: May 13, 1983
(May 17, 1983 Regul Meeting)
,
�
,�� �
FROM: B.A. Maus � i
SUBJECT: HAMPDEN BUILDING LIMITED PARTNERSHIP
PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT
$1 ,000,000 TAX EXEMPT MORTGAGE (NON-876)
OFF-SITE
RESOLUTION N0. 2140
PUBLIC HEARING - CREATION OF INDUSTRIAL DEVELOPMENT DISTRICT
RESOLUTION N0. 2141
1 . THE COMPANY
Mr. Jerry Trooien will be the general partner of the Hampden Building
Limited Partnership. Mr. Trooien is an experienced real estate developer
currently holding interest in 16 different real estate projects, the
majoriLy of which are housing related.
2. THE PROJECT
The Hampden Building is located at 830 Hampden Avenue in the Midway
area. The building is currently 40% occupied and in substandard
condition. Mr. Trooien, acting as general partner, intends to
syndicate a limited partnership allowing him to recover current
expenses in making emergency building repairs and the recent acquisition
of the property.
It is estimated that it will cost $500,000 to $600,000 to remodel the
building and bring it into code compliance. The additional proceeds
of the $1 million issue will be used to pay for those repairs and
acquisition costs alluded to earlier.
The gross square footage of the building is 46,600 square feet with
a net rentable area of 41 ,600. A portion of this space is currently
occupied; consequently, the spec space remaining should not have a
significant effect on the market in the Midway area. The owner's
projections regarding building income for each type of use and the
floors are attached for your review.
' � � �l�'a�'����
t . . t'��._ 4, fr�
7
f
BOARD OF COMMISSIONERS
May 13, 1983
Page -2-
3. FINANCING
Staff is recommending approval of a tax exempt mortgage (non-876) for
a term of 30 years which will be privately placed not to exceed $1 million.
The Port Authority will act as trustee collecting rental payments monthly
and its normal fiscal and administrative fees. The mortgage has not
yet been placed with a financial institution. The preliminary agreement
as drafted specifically staies that this cannot be taken out with an
876 revenue bond should the agreement not be placed. The purpose in
requesting preliminary approval at this time is to allow Mr. Trooien
to go into the building and make necessary repairs that are code related
which allows the current tenants to continue to occupy the building.
4. RECOMMENDATIONS
Staff has met with District 12 and reviewed the project in detail ; the
District 12 Community Council has approved the project.
This development will create an additional 30 jobs in the Midway area
and improve a substandard building. In view of the fact that the Port
Authority is not put at risk on this issue, staff recorrnnends approval
of Resolution Nos. 2140 and 2141 .
BAM:ca
Attach.
��� i,� i'
. ` , � �� 't.��� 7
/
Resolutiaz No. =�`�`���
RESOLUTION OF ._ .
_ THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Ctiapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and commerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unemployment and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREP,S, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and
WHEREAS, The Port �,uthority ot the City of Saint Paul
(the "Authority") has received from Jerry Trooien ( "Trooien") a
request that the Authority issue its revenue bonds (in the form
of a single note) to finance the acquisition and im�rovement of
the Hampden Building located at 830 Hampden, in the City of St.
Paul (hereinafter called the "Project") by a limited
partnership to be formed by Mr. Trooien and to be identified as
Hampden euilding Limited Partnership (hereinafter referred to
as "Partnership" ) , all as is more fully described in the staff
report on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the community, to retain and improve
its tax base and to help it provide the range of services and
employment opportunities required by its population, and said
� � � � - ����������
Project will assist the City in achieving that objective. Said
Project will help to increase the asseesed valuation of the
City and help maintain a positive relationship between assessed
valuation and debt and� enhance the image and reputation of the
City; and .
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREAS, the Authority has been advised by Trooien
that conventional, commercial financing to pay the capital cost
of the Project is available only on a limited basis and at such
high costs of borrowing tha*_ the economic feasibility of
operating the Project would be significantly reduced, but
Trooien has also advised this Authority that with the aid of
revenue bond financing, and its resulting low borrowing cost,
the Project is economically more feasible;
WHEREAS, Mill�r & Schroeder Municipals, Inc. (the
"Placement Agent") has made a proposal relating to the
placement of the revenue bonds to be issued to finance the
Project on a private basis;
WI3EREAS, the Authority, pursuant to Minnesota
Statutes, Section 474.01, Subdivision 7b did nublish a notice,
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal of
the Partnership that the Authority finance the Project
hereinbefore described by the issuance of its industrial
revenue bonds; and
WHEREAS, the Authority, did conduct a public hearing
pursuant to said notice, at which hearing the recommendations
contained in the Authority' s staff inemorandum to the
Com�nissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
with respect to the proposal.
- NOW, THEREFORE, BE IT RESOLVED by the Conanissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows:
1. - On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
- , ° . . �e'`�,t���t�.�'�
business within the meaning of Subdivision 1(a) of Section
474.02 of the Act; that the Project furthers the purposes
stated in Section 474.01 of the Act, that the availability of
the financing under the Act and willingness of the Authority to
furnish such financing will be a substantial inducement to the
Partnership to undertake the Project, and that the effect of
the Project, if undertaken, will be to encourage-�the cievelop-
ment of economically sound industry and commerce and assist in
the prevention of the emergence of blighted and marginal land,
and will help to prevent chronic unemployment, and will help
the City to retain and improve its tax base and provide the
range of services and employment opportunities required by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
state where their services may not be as effectively �sed and
will result in more intensive development and use of land
within the City and will eventually result in an increase in
the City's tax base; and that it is in the best interests of
the port district and the people of the City of Saint Paul and
in furtherance of the general plan of development to assist the
Partnership in financing the Project.
2. Subject to the mutual agreement of the
Authority, the Partnership and the purchaser of the revenue
bonds as to the details of the loan agreement and mortgage or
other revenue agreement as defined in the Act, and other
documents necessary to evidence and effect the financing of the
Project and the issuance of the revenue bonds, the Project is
hereby approved and authorized and the issuance of revenue
bonds of the Authority (in the form of a single note) i.n an
amount not to eaceed appr.oximately $1, 000,000 (other than such
additional revenue bonds as are needed to complete the Project)
is authorized to finance the costs of the Project and the
recommendations of the Aut2lority' s staff, as set forth in the
staff inemorandum to the Commissioners which was presented to
the Commissioners, are incorporated herein by reference and
approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner of
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authorized to
provide the Commissioner with such preliminary information as
he may require.
� . . � �. :.?�•��
4. There has heretofore been filed with the
Authority a form of Preliminary Agreement between the Authority
and Trooien, relating to the proposed construction and
financing of the Project. The fona of said Agreement has been
examined by the Commissioners. It is the purpo$e af� said
Agreement to evidence the commitment of the parties and their
intentions with respect to the proposed Project in order that
Trooien and/or the Partnership may proceed without delay with
the commencement of the acquisition, installation and
construction of the Project with the assurance that there has
been sufficient "official action" under Section 103(b) of the
Internal Revenue Code of 1954, as amended, to allaw for the
issuance of industrial revenue bonds to finance the entire cost
of the Project upon agreement being reached as to the ultimate
details o£ the Project and its financing. Said Agreements are
hereby approved, and the President and Secretary of the
Authority are hereby authorized and directed to execute said
Agreement.
5. Upon execution of the Preliminary Agreement by
Trooien, the staff of the .a,uthority are authorized and directed
to continue negotiations with the Partnership so as to resolve
the remaining issues necessary to the preparation of the
revenue agreement and other documents necessary to the adoption
by the Authority of its final bond resolution and the issuance
and delivery of the revenue bonds.
6. The revenue bonds and interest thereon shall not
constitute an indebtedness of the Authority or the City of
Saint Paul within the meaning of any constitutional or
statutory limitation and shall not constitute or give rise to a
pecuniary liability of the Authority or the City or a charge
against their general credit or taxing powers and neither the
full faith and credit nor the taxing powers of the Authority or
the City is pledged for the payment of the bonds (and interim
note or notes) or interest thereon.
7. In order to facilitate completion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to consent, pursuant to Laws of i�innesota, 1976,
Chapter 234, to the issuance of the revenue bonds herein
contemplated and any additional bonds which the Authority may
prior to issuance or from time to time thereafter deem
necessary to complete the Project or to refund such revenue
bonds; and for such purpose the Executive Vice President of the
Authority is hereby authorized and directed to forward to the
City Council copies of this resolution and said Preliminary
Agreement and any additional available information the City
Council may request.
- � � � � `,"' '`�,���
.
� . �. . s �
8. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in describing the general nature of the Project and
estimating the principal amount of bonds to be issued to
finance the Project and in preparing a draft of the proposed
application to the Commissioner of Securities, State of
Minnesota, for approval of the Project, which. has �een
available for inspection by the public at� the office of the
Authority from and after the publication of notice of the
hearing, are in alI raspects ratified and confirmed.
Adapted May 17, 1983 �
�
, � , /
'� ,�:�..
Attest
Presi e
_ � The; Po Authority of the City
� �� of Saint Paul
�
�;
!�"��,'�;;,;. -<,�-��,i!��i
'" Secretary -
r
.,.,_.....^ � . _ .
St. Paul Port Authority DEPARTI,tENT �������
B.A. Maus, E.A. Kraut �ONTACT
224-5686 PHONE ���� �� '
May 17, 1983 DATE
(Routing and Explanation Sheet)
Assign Number for Routing Order (Clip All Locations for Mayoral Signature):RECEIVED
Department Di rector �� ,J�N 1 �9�
Ci ty Attorney c�,�V�D ��TY ArTOR
nt/Mayor . �� NE'�/
�vtv 2 '�g�3
5 Ci ty C1 erk OFFICE
Budget Di rector M�YORS
,
What Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):
The purpose for the revenue bond issue is to finance the construction of a 9,600 square
foot truck maintenance facility at 739 Vandalia in St. Paul for Central Warehouse
Corr�any. The amount of the bond issue is $445,000 and the term is for 30 years.
Financia� , Budgetary and Personnel Impacts Anticipated:
The project will add approximately 20 1obs at the Midway location which are not
currently located in St. Paul.
Funding Source and Fund Activity Nur�er Charged or Credited:
Attachments (List and Number all Attachments) :
1. Staff Memorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 2144.
cc. R. Thorpe, Manpower Services
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
Yes No Council Resolution Required? Resolution Required? Yes No
Yes No Insurance Required? Insurance Sufficient? Yes _ No
Yes No Insurance Attached?
Revision of October, 1982
(See Reverse Side for �Instructions)
.. �-�': `_ r.1`� �i.j.rl,�T V.Li� /,J<111�Tr�` �,t.� lJ _li
/ f��� ��1 � r . �lz���Q.r�,.l�
, , ,-:. •'':,. .• ', �� ` � Ol�'i�'ICI: O]�• •1,�I��� C1T1 CUli\(,II.
_; _. .
' '. � '•'.;'` � ;
'���. - -_ '�;�: D o t e : June 22, 1983
''��::-�:, � � .
�-'�=�'-
� . -w`=oy��
�C��f�l�.�i i I �� ' � - ,�� � `� .
L— . a ..
Tp : � G �n� Pa � I� Cifiv Co�� �ci l � .
�R O n!� � C O i7l�1 j��L°2 O h FINANCE, MANAGEMENT $ PERSONNEL
' � � . C H A I R James Scheibel �
-9-�nn. -
• ,�. �i W�� �
1. Approval of minutes from meeting heZd June 1G, I983. `�
2. Resolution aut}iorizing the,�City to apply to }iUD for sup lemental F1' 1983 .
� CD�3G Year IX funds. (Community Del�elopment}�- - .
3. Resolutiqn authorizing the submission of an application to EDA fox additional
funding for Energy Park. (Cornmunity Development)�/�Oj,�{,{-=����
..
4. }:esolution approz�ing the issuance of tax exempt revenue bonds t.o finance acc�uisi-
- � tion and remodeling of the Hampden Bui.ldin�;. (Port Authority) �j=DL���:�
5. Resolution approving the issuance of revenue bonds to fiiiance construction.of.
a maintenance facility for Central l►arehouse Company. (Port Autliority�"��j'(�'���
- ,. .
6. Resolution approving t}ie issuance of xevenue boncls to finance constrvction �
of an office/distribution center. for Crescent Electric Supply Co. (Port_ Authorit �) �
�r�� ��
7. Resolution approving additions to the 1983 Budget to take care of expenses �
iT�curi`ed for the 1953 Tax Anticipation Certificate Sale. (Finance llept.-) 'f����^�'� ,z-j
. r
S. Resolution approving additions to the 1953 Budget for disbursement of funds
� from the Debt Service Account. (Finance Dept.�,pr.�r����+e�
�
9. Resolution approving securities pledged by Commercial State Rank. Finance _Dept.)
�jpr�r����o-
CIT�' }lALL SEVENTH FLOOI: SAIt�'T PAUL, �il�\GSOTA 55102
•���..„